The IRS said on Thursday that interest rates will remain unchanged for the calendar quarter beginning Oct. 1.
Overpayments will carry a rate of three percent, unless the overpayment involves a corporation, in which case the rate is two percent. Underpayments carry an interest rate of three percent, and large corporate underpayments will carry a five percent rate. The portion of a corporate overpayment exceeding $10,000 will carry a rate of 0.5 percent.
Under the Internal Revenue Code, interest rates are determined on a quarterly basis. Taxpayers other than corporations see overpayment and underpayment rates equivalent to the federal short-term rate, plus three percentage points.
For a corporation, the underpayment rate is the federal short-term rate plus three percentage points, and the overpayment rate is the short-term rate plus two percentage points.
For large corporate underpayments, the rate is also the federal short-term rate, plus five percentage points. The rate on the portion of a corporate overpayment of more than $10,000 for a taxable period is the federal short-term rate plus 0.5 percent.
Interest rates are computed from the federal short-term rate set in July.